The inflation tax is not only real, it's massive [View all]

[MichMan]

"If you are under the impression that the “inflation tax” is only an allusion to the shrinking impact inflation has on the purchasing power of your income and savings, you should continue reading.

Inflation is a real tax, just as real and at times nearly as important as the individual income tax. While inflation clearly does reduce the purchasing power of your earnings and fixed-income asset values, it also redistributes purchasing power from businesses and households to the federal government. And in today’s economy, with inflation running at 5.4 percent, the inflation tax is no small matter. The amount the government will collect from the inflation tax in 2021 exceeds $1.9 trillion.

Most people understand that inflation can redistribute income and wealth. For example, many probably are aware that unanticipated inflation benefits borrowers at the expense of creditors. When inflation is higher than expected, borrowers repay debt with future dollars that have less purchasing power."


https://thehill.com/opinion/finance/580043-the-inflation-tax-is-not-only-real-its-massive